Steak 'n Shake auction canceled, store continues operation

Following through on his pledge to stop the auction of his store, the owner of the Steak 'n Shake in Millersville filed for bankruptcy on behalf of the restaurant's holding company.

Khalil Ahmad told The Capital he filed bankruptcy for the holding company, 8100 Veterans SNS LLC, in order to keep the store.

Bank United National Association sued Ahmad, his associates and other businesses May 3 for defaulting on a $3.2 million loan, which has grown — because of interest and late fees — to a debt of approximately $3.4 million. Bank officials could not be reached for comment.

Ahmad said he plans to use bankruptcy to restructure his loan payment plan, which included monthly payments of more than $21,000, court documents show.

David Cohen, Ahmad's attorney, wrote in bankruptcy court documents that the company seeks "to use rental income from First Adventure LLC in the course of its reorganization, for the sole purposes of making" debt payments.

Neither Cohen nor Ahmad's other attorney, David Silbiger, could be reached for comment.

It is not immediately clear how Ahmad's other company, First Adventure LLC, collects rental income.

The auction, scheduled for June 30, was canceled until the U.S. Bankruptcy Court for the District of Maryland determines an outcome for the case. For now, the store will continue its regular operations.

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